New Delhi: State-run refiners BPCL in talks with rosneft Dubai to buy about 6 million metric tons (43.8 million barrels) of discounted Russian crude at a price based on the benchmark, according to three sources with direct knowledge of the matter.
The deal will deepen India’s commitment to its ever-biggest oil supplier in the face of Western sanctions on Moscow and Rosneft’s pricing of its oil against the Middle Eastern benchmark used in Asia and away from Europe-dominated Brent. Will mark a continuous change in
Under the pending deal, Rosneft will deliver the equivalent of 6 to 7 cargoes of about 700,000 to 720,000 barrels per month to Bharat Petroleum Corp Ltd (BPCL) by March 2024, according to the sources, who declined to be named because they were not familiar with the deal. Authorized to speak to the media.
Sources said the talks for the contract are in final stages and both the parties are working out other details including payment terms.
BPCL and Rosneft did not respond to requests for comment.
A deal, which needs approval from BPCL’s board, will further expand the share of Russian oil flows for the world’s third largest oil importer.
After the removal of supplies from Europe, Russia has become India’s top oil supplier with a 40% share.
Indian refineries, which in the past rarely bought Russian oil due to high transportation costs, are buying crude sold at a discount after some Western entities and countries stopped buying from Moscow following the invasion of Ukraine.
European Union countries stopped buying Russian oil from December 5 and the Group of Seven (G7) countries joined the EU in imposing a price cap of $60 a barrel on Russian crude to curb Moscow’s revenues. Went.
Sources said the price of Russian crude sold to BPCL would be at a discount of $8 a barrel to the Dubai benchmark.
Indian oil The country’s top refiner Corp signed a 1.5 million metric tonne per month oil deal with Rosneft in April at a discount of $8 to $10 a barrel to the Middle East benchmark, according to sources.
Rosneft is slowly moving ahead of the Europe-dominated Brent benchmark as sales of Russian oil shifted mostly to Asia after Europe stopped buying from Moscow.
Both benchmarks are denominated in dollars and are determined by S&P Global Platts, a unit of US-based S&P Global Inc.
The Dubai benchmark is heavily influenced by Asian and Middle Eastern oil trade, while Brent is mostly used to price crude oil from Europe, Africa and South America.
Russia is shifting its energy supplies from traditional markets in Europe to Asia, primarily India and China, as the West imposes sweeping sanctions, including a ban on Russian oil imports by sea.
Like most Indian refiners, BPCL makes spot purchases of Russian oil, mostly from traders.
Sources said that in the new contract under discussion, BPCL aims to import various Russian oil grades including Sokol, Varandeya and Urals.
The deal will deepen India’s commitment to its ever-biggest oil supplier in the face of Western sanctions on Moscow and Rosneft’s pricing of its oil against the Middle Eastern benchmark used in Asia and away from Europe-dominated Brent. Will mark a continuous change in
Under the pending deal, Rosneft will deliver the equivalent of 6 to 7 cargoes of about 700,000 to 720,000 barrels per month to Bharat Petroleum Corp Ltd (BPCL) by March 2024, according to the sources, who declined to be named because they were not familiar with the deal. Authorized to speak to the media.
Sources said the talks for the contract are in final stages and both the parties are working out other details including payment terms.
BPCL and Rosneft did not respond to requests for comment.
A deal, which needs approval from BPCL’s board, will further expand the share of Russian oil flows for the world’s third largest oil importer.
After the removal of supplies from Europe, Russia has become India’s top oil supplier with a 40% share.
Indian refineries, which in the past rarely bought Russian oil due to high transportation costs, are buying crude sold at a discount after some Western entities and countries stopped buying from Moscow following the invasion of Ukraine.
European Union countries stopped buying Russian oil from December 5 and the Group of Seven (G7) countries joined the EU in imposing a price cap of $60 a barrel on Russian crude to curb Moscow’s revenues. Went.
Sources said the price of Russian crude sold to BPCL would be at a discount of $8 a barrel to the Dubai benchmark.
Indian oil The country’s top refiner Corp signed a 1.5 million metric tonne per month oil deal with Rosneft in April at a discount of $8 to $10 a barrel to the Middle East benchmark, according to sources.
Rosneft is slowly moving ahead of the Europe-dominated Brent benchmark as sales of Russian oil shifted mostly to Asia after Europe stopped buying from Moscow.
Both benchmarks are denominated in dollars and are determined by S&P Global Platts, a unit of US-based S&P Global Inc.
The Dubai benchmark is heavily influenced by Asian and Middle Eastern oil trade, while Brent is mostly used to price crude oil from Europe, Africa and South America.
Russia is shifting its energy supplies from traditional markets in Europe to Asia, primarily India and China, as the West imposes sweeping sanctions, including a ban on Russian oil imports by sea.
Like most Indian refiners, BPCL makes spot purchases of Russian oil, mostly from traders.
Sources said that in the new contract under discussion, BPCL aims to import various Russian oil grades including Sokol, Varandeya and Urals.